China is a communist country. It is no secret that all "capitalist"
enterprises are essentially State controlled, or at the very least are
subject to nationalization should the State deem it necessary. Most ASIC
chips are manufactured in China, so they are cheap and accessible to
Chinese miners. Electricity is subsidized and essentially free. Cooling is
not an issue since large parts of China are mountainous and naturally cool.
In short the Chinese miners have HUGE advantages over all other mining
operations. This is probably why, between just the top 4 Chinese miners,
the People's Republic of China effectively controls 57% of all the Bitcoin
being mined.
The ONLY disadvantage the Chinese miners have in competing with the rest of
the world is bandwidth. China has poor connectivity with the rest of the
world, and Chinese miners have said that an increase in the block size
would be detrimental to them. I say, GOOD! Most of the free world has
enough bandwidth to be able to handle larger blocks. We need to take
advantage of that fact to get mining out of the centralized control of the
Chinese.
If you're truly worried about larger blocks causing centralization, think
about how, by restricting blocksize, you're enabling the Communist Chinese
government to maintain centralized control over 57% of the Bitcoin hashing
power.
--
*James G. Phillips IV*
<https://plus.google.com/u/0/113107039501292625391/posts>
<http://www.linkedin.com/in/ergophobe>
*"Don't bunt. Aim out of the ball park. Aim for the company of immortals."
-- David Ogilvy*
*This message was created with 100% recycled electrons. Please think twice
before printing.*
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